1. Introduction

1.1 Background and Purpose

In recent years, the cryptocurrency market has experienced rapid growth, becoming an influential force in global finance. From the early days of Bitcoin to the emergence of numerous digital assets, the crypto market has demonstrated immense potential and vitality. However, due to its innovative and unique nature, the cryptocurrency market also faces numerous challenges and uncertainties, particularly in terms of regulatory changes that have profound effects on the industry.

Donald Trump, as a key figure in U.S. politics, holds significant influence over financial markets. His stance and policy decisions regarding cryptocurrencies are closely watched by investors and industry participants. Throughout his election campaigns and presidency, Trump’s statements and actions have had the potential to reshape both the U.S. and global cryptocurrency markets.Among the various cryptocurrencies, XRP holds a notable position due to its unique technological characteristics and use cases. It has attracted the attention of investors and developers alike. Therefore, analyzing the relationship between Trump’s policies and XRP, along with their impact on the XRP market, holds great practical significance.

2. Trump and the cryptocurrency market

2.1 Overview of Trump’s Political and Business Background

Donald Trump has an extensive and unique career in both politics and business. His political journey has been dramatic and impactful. Initially a Democrat, he later joined the Republican Party and ran for president multiple times starting in 2000. On November 9, 2016, he defeated Democratic candidate Hillary Clinton to become the 45th President of the United States. During his first term, he pursued an “America First” policy, implementing measures related to tax cuts, trade policies, financial deregulation, and military and diplomatic strategies. His tax-cut policies stood out as a key achievement, while his foreign policy actions, including withdrawal from international organizations, trade wars, and two impeachment proceedings, sparked significant controversy. In the 2024 presidential election, Trump secured another victory and was inaugurated as the 47th President of the United States on January 20, 2025.

From a business perspective, Trump has built a vast commercial empire. After graduating in 1968, he joined his family’s real estate business and became chairman and president in 1971. Over the years, he expanded into multiple sectors, including real estate, hotels, casinos, and golf courses. Trump owns iconic properties such as Trump Tower on Fifth Avenue in New York City and operates international hotels in locations like Bali, Indonesia; Turkey; Panama; and Ireland. Licensing the “Trump” name alone generates annual revenues of $1 million to $5 million. His extensive network of golf courses once proved highly profitable, with 17 properties worldwide as of August 2016. In the 1990s, he operated three casinos—Trump Plaza, Trump Castle, and Trump Taj Mahal—peaking at a combined market value of $1 billion. Additionally, he ventured into private jet leasing, television production, and modeling agencies, owning Sentient Jets and producing popular TV shows such as The Apprentice and Celebrity Apprentice.

2.2 Evolution of Trump’s Attitude Towards Cryptocurrency

Trump’s attitude toward cryptocurrencies has undergone a significant transformation. In the early years, he was skeptical and critical of digital assets. In 2021, he openly declared Bitcoin a “scam” during an interview with Fox News, citing concerns about speculation, lack of regulation, and financial risks. At this stage, Trump aligned with traditional financial and political figures who viewed cryptocurrencies with caution, seeing their decentralized nature as conflicting with government oversight and financial stability.

However, by the 2024 U.S. presidential election, his stance shifted dramatically. Trump gained strong support from the crypto industry, leading to a 180-degree reversal in his position. Several factors contributed to this shift. First, the cryptocurrency sector had grown significantly, amassing a vast market size and economic influence. To secure backing from this emerging power base, Trump adjusted his policies. Second, political competition played a crucial role. The Biden administration had cracked down on the crypto industry, and by embracing digital assets, Trump differentiated himself from his predecessor’s regulatory stance, aiming to attract disaffected voters and gain political capital.

After winning the election, Trump wasted no time in enacting pro-crypto policies. On January 23, 2025, he signed an executive order establishing the Presidential Task Force on Digital Asset Markets, tasked with assessing the feasibility of a national digital asset reserve and developing a regulatory framework. On March 2, he announced via social media the launch of a Crypto Strategic Reserve Plan, incorporating Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) into the national reserve framework. Trump further stated his commitment to making the U.S. the world’s leading hub for cryptocurrency innovation. These moves signaled a decisive policy shift from rhetoric to action, positioning the U.S. as a more crypto-friendly jurisdiction.

2.3 The overall impact of Trump-related policies on the cryptocurrency market

Trump’s policies have had profound and multifaceted impacts on the cryptocurrency market. His policy announcements have triggered significant market movements. For instance, after he revealed the Crypto Strategic Reserve Plan on March 2, 2025, the crypto market’s total capitalization surged by over $300 billion in a single day. Bitcoin surpassed $95,000, while ADA, XRP, and ETH saw 24-hour gains of 59.61%, 23.73%, and 9.57%, respectively.

However, uncertainty surrounding policy details and broader macroeconomic concerns, such as Trump’s tariff policies, led to rapid market corrections. Investor sentiment shifted, causing major cryptocurrencies, including BTC and ETH, to trade below pre-announcement levels, while XRP and SOL nearly erased their gains. This scenario underscores that while Trump’s policies can drive short-term bullish momentum, sustainable growth in the crypto market depends on regulatory clarity and policy stability.

In terms of investor sentiment and market confidence, Trump’s policies have also had a profound impact. When he released signals supporting cryptocurrencies, such as launching the personal Meme coin TRUMP and announcing the advancement of the cryptocurrency strategic reserve plan, market confidence was greatly boosted, attracting a large number of investors to enter the market. Many investors believe that the policies of the Trump administration will bring a more relaxed regulatory environment and development opportunities for the cryptocurrency industry, leading them to actively buy cryptocurrencies. However, once there is policy uncertainty or market expectations for policies fail to materialize, investor sentiment can quickly turn to panic.

3. XRP Comprehensive Analysis

3.1 XRP Technical Principles and Characteristics

XRP is based on the Ripple protocol, which is a decentralized distributed ledger technology designed to achieve fast and low-cost value transfer on a global scale. Unlike cryptocurrencies such as Bitcoin that use Proof of Work (PoW) consensus mechanism, XRP adopts the Ripple protocol consensus algorithm (RPCA). Under this mechanism, validation nodes in the XRP network achieve consensus through voting to determine the validity of transactions, without the need for extensive computation and energy consumption as in PoW.

XRP’s transaction speed is extremely fast, with an average confirmation time of only about 4 seconds, far surpassing Bitcoin’s average of 1 hour and Ethereum’s several minutes. For example, in cross-border payment scenarios, using XRP for fund transfers can achieve almost real-time settlement, greatly improving fund turnover efficiency. Additionally, XRP has very low transaction fees, with an average transaction fee of only 0.00001 XRP (approximately $0.00003), giving it a significant advantage in small-value and high-frequency transactions.

XRP also has highly scalability, with its network capable of handling up to 1500 transactions per second, easily meeting the needs of large-scale enterprise payments. Furthermore, the XRP network has high stability, effectively avoiding network congestion issues caused by a surge in transaction volume through its unique consensus mechanism and distributed ledger design, ensuring that transactions can proceed smoothly and stably.

3.2 The market development history of XRP

Since its inception in 2012, XRP has undergone a turbulent market development journey. In its early years, XRP’s price remained relatively low, with limited market attention. By 2013, XRP’s market capitalization surpassed $10 million, and its price broke through the $0.01 mark for the first time, gradually entering the radar of investors. As Ripple continued to establish strategic partnerships with banks and other financial institutions, XRP’s market recognition steadily increased.

Between 2017 and 2018, XRP experienced an explosive surge. By the end of 2017, XRP’s price skyrocketed to an all-time high of $3.84, with its market capitalization exceeding $140 billion, ranking it among the top three cryptocurrencies. During this period, the overall crypto market was in a bullish cycle, and investors were highly optimistic about XRP’s future, leading to massive capital inflows that drove its price upward. However, the market soon transitioned into a bear cycle, and by 2018, XRP’s price had plummeted by over 90% to $0.25. This sharp decline was primarily driven by a broader market correction and the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple, alleging the sale of unregistered securities, which introduced significant uncertainty to XRP’s market.

From 2019 to 2021, XRP exhibited a fluctuating recovery trend. In 2019, XRP’s price gradually climbed, reaching $0.35 by early 2020. In 2021, as the crypto market rebounded, XRP once again surged to $1.96. However, the ongoing SEC lawsuit continued to cast a shadow over XRP’s market outlook. Between 2022 and 2023, XRP’s price remained volatile within the $0.50 to $0.70 range, as market participants adopted a cautious stance while awaiting the lawsuit’s resolution.

By 2024, with changes in market conditions and former U.S. President Donald Trump’s shifting stance on cryptocurrencies, XRP’s market activity reignited. Since November 5, XRP has seen an over fourfold increase in value, with its price surging beyond $3 in a single week, reaching its highest level in nearly seven years and reclaiming its position as the third-largest cryptocurrency by market capitalization. This rally reflects growing investor optimism regarding the potential approval of an XRP ETF under the new administration, reinforcing confidence in XRP’s future prospects.

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3.3 XRP’s Potential Role in the Global Financial System

In the field of cross-border payments, XRP has huge advantages and potential. Traditional cross-border payments have many pain points, such as slow transaction speed, high fees, and cumbersome processes. With its fast transaction confirmation time and extremely low transaction costs, XRP can provide efficient and low-cost solutions for cross-border payments. Many financial institutions have begun to experiment and cooperate with XRP for cross-border payments, such as MoneyGram, by accessing the XRP network, achieving near real-time, low-cost cross-border transfer services, greatly improving the efficiency and experience of cross-border payments.

In terms of financial settlement, XRP can also play an important role. Its distributed ledger technology and efficient consensus mechanism make financial settlements faster and more accurate, reducing intermediary links and time costs. For example, in the settlement of large sums of money between banks, using XRP can achieve real-time arrival, reduce the risk of funds in transit, and improve the operational efficiency of the financial system.

The integration of XRP with traditional finance has broad potential. Ripple has been actively collaborating with financial institutions around the world to promote the application of XRP in traditional finance. By partnering with banks, payment institutions, etc., XRP can serve as a bridge currency, connecting different financial systems and payment networks, and promoting global financial interoperability. With the gradual maturity of the cryptocurrency market and the increasingly improved regulatory environment, XRP is expected to play a more important role in the global financial system, serving as a significant link between traditional finance and emerging finance.

4. The deep connection between Trump and XRP

4.1 Trump’s election triggers XRP market fluctuations

The news of Trump’s election as president was like a bombshell, causing waves in the cryptocurrency market, and the XRP market was also significantly affected. From the price trend perspective, shortly after the announcement of Trump’s election news, XRP prices experienced drastic fluctuations. Due to the market’s uncertainty about Trump’s future policies, investor sentiment showed clear divisions. Some investors believe that Trump may adopt a more lenient policy towards cryptocurrencies, thus bullish on the future development of XRP, actively buying XRP and driving up prices; while others are concerned that Trump’s policies may bring unknown risks, choosing to sell XRP, leading to price declines. In the week after Trump’s victory in November 2024, XRP prices first rose by 15%, then fell by 8%, reflecting the market’s complex reaction to Trump’s election.

In terms of market capitalization, the market value of XRP also changes with price fluctuations. After the election news was announced, the market value of XRP once soared, entering the top three in the global cryptocurrency market capitalization rankings. This is mainly because the price increase attracted more investor attention and capital inflows, driving market value growth. However, as the price corrected, the market value also declined. Compared to other cryptocurrencies, the market value fluctuation of XRP was more pronounced after Trump’s election. Bitcoin, as the leader of the cryptocurrency market, has a relatively stable market value, with fluctuations after Trump’s election but much smaller than XRP. The market value fluctuation of Ethereum falls between Bitcoin and XRP. This indicates that the XRP market is more sensitive to political factors, and the election of Trump has a more significant impact on its market value.

In terms of trading volume, XRP’s trading volume has significantly increased after Trump’s election. Many investors are trading XRP frequently in market fluctuations, trying to seize the opportunities brought by price fluctuations. Within 24 hours of the election announcement, XRP’s trading volume reached three times the average trading volume of the past week. This significant increase in trading volume reflects, on the one hand, a sharp rise in market attention to XRP, with investors’ enthusiasm soaring; on the other hand, it also indicates a significant divergence in market views on the future trend of XRP, with intense competition between long and short positions.

4.2 The impact of Trump’s push for strategic reserves of cryptocurrencies on XRP

Trump’s push for the strategic reserve plan for cryptocurrencies has had a significant impact on XRP in many ways. In terms of price, when Trump announced the inclusion of XRP in the strategic cryptocurrency reserve, the price of XRP quickly rose. After the news was released on March 2nd, the price of XRP once broke through $3 within a few hours, with a 24-hour increase of over 30%. This is because the plan is seen by the market as an official recognition of the value of XRP, enhancing investors’ confidence in XRP and attracting a large amount of capital inflow, thereby driving up the price.

The market expectations have also undergone significant changes. Previously, due to the Securities and Exchange Commission (SEC) lawsuit against Ripple, there was significant uncertainty in the XRP market outlook, and investors were generally cautious. However, Trump’s push for a strategic reserve plan for cryptocurrencies, especially including XRP in the reserve, has shown the market the supportive attitude of the U.S. government towards XRP, changing the market’s expectations for XRP. Investors are starting to believe that XRP may receive broader applications and recognition in the future, and its market position will be strengthened and enhanced, further driving demand for XRP in the market.

From the perspective of industry status, XRP’s inclusion in strategic reserves has elevated its position in the cryptocurrency industry. It is no longer seen as just a regular cryptocurrency, but has become part of the United States’ national strategic reserves, which has increased XRP’s recognition in the global financial system. Many financial institutions and investors are starting to reevaluate the value and potential of XRP, and some institutions that were originally cautious about XRP are considering increasing their investments in it. This helps XRP to expand into more application scenarios in areas such as cross-border payments and financial settlements, further solidifying its position in the cryptocurrency market.

4.3 Market Reaction and Interpretation of Trump’s Relationship with XRP

The market has reacted strongly to the relationship between Trump and XRP, with investors, market participants, and experts expressing their views, which have had a significant impact on market confidence and investment decisions.

Investors are highly concerned about the relationship between Trump and XRP, and their investment decisions are significantly influenced by this relationship. Some investors believe that Trump’s support for cryptocurrency, especially the strategic reserve inclusion of XRP, is a positive signal, indicating a broad future development prospect for XRP. As a result, they have increased their investment in XRP, and some have even included XRP in their long-term investment portfolios. Some long-term cryptocurrency investors have increased their buying intensity for XRP after Trump announced relevant policies, hoping to achieve higher returns in the future. However, some investors are concerned about the stability and sustainability of Trump’s policies. They worry that policies may change or encounter difficulties in implementation, posing risks to the XRP market. These investors are more cautious in their investment decisions and may choose to wait and see for further market clarity.

5. Risks and Challenges

5.1 Inherent Risks of the Cryptocurrency Market

The cryptocurrency market is characterized by high price volatility, making it one of the most significant risks for investors. Crypto asset prices are influenced by multiple factors, including market supply and demand dynamics, investor sentiment, macroeconomic conditions, technological advancements, and regulatory policies. Take Bitcoin as an example—over the past few years, its price has experienced drastic fluctuations. In March 2020, amid the global economic panic triggered by the COVID-19 outbreak, Bitcoin’s price plummeted nearly 50% in a short period, falling from around $9,000 to below $4,000. However, in 2021, as the global economy recovered and institutional investors poured into the crypto space, Bitcoin surged to an all-time high of $69,000. Such extreme price swings pose substantial risks to investors, potentially leading to significant losses within short timeframes.

Market manipulation risks are also prevalent in the cryptocurrency sector. As a relatively young market with evolving regulatory frameworks, crypto trading environments often lack sufficient oversight, leaving room for manipulative activities. Large investors or institutions, often referred to as “whales,” may leverage their substantial capital to execute short-term mass buy or sell orders, artificially driving price movements in their favor to secure unjust profits.

5.2 The impact of Trump’s policy uncertainty on XRP

There is a certain degree of uncertainty in Trump’s policy proposals and decisions, which poses potential risks to the XRP market. Trump’s policies in the cryptocurrency field may be adjusted with changes in the political situation, economic conditions, and other factors. For example, although he currently holds a supportive attitude towards cryptocurrencies, in the future, he may change his position on cryptocurrencies due to financial stability, tax policies, or other political considerations, and strengthen the regulation of the cryptocurrency market. This policy uncertainty makes it difficult for investors to accurately predict the future trends of the XRP market, increasing investment risks.

The attitude and policies of the US Congress towards cryptocurrencies will also have an impact on XRP. The Congress has significant power in formulating financial regulatory policies and laws, and its stance on cryptocurrencies may differ from the Trump administration. If the Congress enacts policies or laws unfavorable to the development of cryptocurrencies, such as increasing taxation on cryptocurrency transactions, strengthening regulation of cryptocurrency exchanges, etc., the XRP market will inevitably be impacted. Even if Trump supports cryptocurrencies, opposition from the Congress may lead to significant difficulties in policy implementation, thereby affecting the development of the XRP market.

One of the major risks facing the XRP market is the changes in regulatory policies. The regulatory policies in the cryptocurrency market are still incomplete globally and are constantly changing. The adjustment of cryptocurrency regulatory policies by the Trump administration may bring uncertainty to the XRP market. For example, the lawsuit by the U.S. Securities and Exchange Commission (SEC) against Ripple, although somewhat eased after Trump’s election, is still pending. If the SEC ultimately determines XRP to be a security, Ripple will face significant legal risks, and the market position and value of XRP will also be severely affected. In addition, changes in cryptocurrency regulatory policies in other countries and regions, such as China’s comprehensive ban on cryptocurrency trading, will also have a chain reaction on the global XRP market, leading to price fluctuations and a loss of market confidence.

Conclusion

The cryptocurrency market is influenced by various factors, with large price fluctuations. Investors need to timely understand market information, including the latest developments in Trump’s policies, the SEC’s lawsuit against Ripple, and the overall trend of the cryptocurrency market. At the same time, it is important to maintain rational investment, not be swayed by market sentiment, and avoid blindly following the investment trends. During the investment process, one should continuously learn and accumulate investment knowledge and experience to improve their investment skills and maximize investment returns.